Big Tax Breaks Could Be Coming for Texas Small Businesses

Running a small business is tough these days. From higher prices on supplies to tariffs on imported goods, many owners are looking for ways to save money. But there may be good news on the horizon: a new tax exemption proposal in Texas could help small businesses hold on to more of their hard-earned cash.

On Wednesday, leaders from the Texas Association of Business and local officials met with shop owners in Denison to share updates on House Bill 9, a proposal that could significantly cut property tax bills for small businesses.

What the Bill Proposes

Currently, Texas businesses pay a “personal property tax” on things like equipment, inventory, and even the furniture inside their shops. The exemption for that tax is set at just $2,500. But under House Bill 9, the exemption would jump to $125,000 — a nearly 5,000% increase.

That change could mean an average savings of about $2,000 per year for many small business owners, according to chamber estimates. For some, that’s the difference between struggling to get by and being able to reinvest in their business.

Why It Matters for Owners

Ashlyn Fajerson, owner of Black Sheep Lounge in Denison, says the timing couldn’t be better. Her business imports cigars from the Caribbean and South America, which often face tariffs of up to 18%.

“The economy is a little iffy right now, and people are a little worried about spending their money,” Fajerson said. “Any money that is being either saved or given back as far as taxes goes… it really does kind of make or break you.”

She isn’t alone. Across Texas, small businesses are facing higher costs due to inflation, supply chain hiccups, and tariffs. Relief from property taxes could help offset those challenges.

For a broader look at how small businesses are navigating economic pressures, check out U.S. Small Business Administration resources and recent insights from the U.S. Chamber of Commerce.

Growing Cities, Growing Needs

Grayson County, home to Denison, has seen rapid growth in new homeowners and developments. Local officials believe that supporting small businesses is key to balancing that growth.

“The Texas economy is on fire — and Denison and this region is contributing to the great economic success that we’re enjoying in the great state of Texas,” said Glenn Hamer, president and CEO of the Texas Association of Business.

With Texas Comptroller of Public Accounts data showing billions generated by small enterprises each year, lawmakers are under pressure to protect the backbone of the state’s economy.

What’s Next

The decision is now up to Texas voters. If House Bill 9 passes, the higher exemption would provide long-term tax relief for thousands of businesses across the state.

For now, business owners like Fajerson are hopeful. “It’s just a little bit of breathing room,” she said. And in today’s economy, breathing room can make all the difference.